Digest:[1]In an administratively final decision, the
Board affirms its earlier calculation of demurrage charges—charges for
detaining a railroad’s rail cars beyond the free time stated in the railroad’s
tariffs—that could be derived from a reasonable interpretation of the record in
this case.

Decided:September 27, 2011

BACKGROUND

In 2009,
Portland & Western Railroad (PNWR or the Railroad) filed an action against
its customer, RK Storage & Warehousing, Inc. (RK) in an Oregon state court seeking payment of demurrage
charges allegedly owed for detaining rail cars during the period June 2006
through July 2008.[2]RK denied owing the amount sought on the 14
disputed demurrage invoices and filed a counterclaim seeking payment from PNWR
of “storage fees.”At the Railroad’s
request, the court referred to the Board all matters that fall within the
Board’s jurisdiction.

The
Railroad filed with the Board a petition for a declaratory order seeking a
ruling that the demurrage charges it sought were reasonable under the Interstate
Commerce Act.After receiving evidence
and argument, the Board issued a decision on July 27, 2011 (July decision) in
which it found that the reasonable amount of demurrage is $19,390 (compared to
$104,120 billed by PNWR), explained its methodology in calculating that amount,
and informed the parties that the Board’s workpapers were available upon
request.The Board stated that the July
decision was not final and afforded the parties 20 days (by August 16, 2011) to
comment on its methodology for ascertaining the reasonable amount of
demurrage.Finally, the decision
provided that, after reviewing any comments, the Board would issue a final
decision either making any necessary adjustment to the reasonable amount of
demurrage or affirming the calculation in the July decision.

In response
to the July decision, both parties requested copies of the Board’s workpapers,
but no comments have been filed.Accordingly, we affirm the calculation of $19,390 as the reasonable
amount of demurrage for the 14 disputed invoices.

This action
will not significantly affect either the quality of the human environment or
the conservation of energy resources.

It is
ordered:

1.The calculation in the July decision of $19,390 as the reasonable amount
of demurrage for the 14 disputed invoices is affirmed.

[1]The digest
constitutes no part of the decision of the Board but has been prepared for the
convenience of the reader.It may not be
cited to or relied upon as precedent.Policy
Statement on Plain Language Digests in Decisions, EP 696 (STB served Sept.
2, 2010).